In a world where Environmental, Social, and Governance (ESG) factors are shaping the business landscape, companies are realizing the importance of stepping up their game. Recent insights from a Deloitte survey reveal a noteworthy development: the creation of cross-functional ESG teams within international companies. Nearly 60% of surveyed executives have already established such teams, marking a significant jump from just a year ago when the figure was a mere 21%. This shift underscores the pivotal role of cross-functional ESG teams in fostering strategic thinking around ESG matters.
The transition from merely committing to ESG principles to taking tangible actions is a compelling evolution. Cross-functional ESG teams are at the heart of this transformation. They bring together experts from different parts of the organization, such as finance, legal sustainability, operations, and accounting, to collectively address the multifaceted challenges posed by ESG issues.
Cross-functional ESG teams are pivotal in the seamless integration of ESG into the company’s overarching strategy. With representatives from various departments, they make sure that ESG considerations are not isolated but deeply embedded in the company’s core. This strategic integration aligns the company’s ESG objectives with its broader mission, enabling it to thrive in an ESG-conscious world.
Communication departments are taking on expanded roles in modern corporate structures. They are no longer just conveyors of messages; they now bear the responsibility of effectively implementing and communicating ESG activities. Cross-functional teams collaborate to guarantee that the right stories are being told. Transparent and compelling ESG communication not only fosters trust but also enhances the company’s reputation.
The rise of cross-functional ESG teams signifies a significant shift towards enhanced accountability and transparency in companies. These teams play a pivotal role in integrating ESG into corporate strategy, ensuring robust reporting, and facilitating effective communication. Empowering sustainability reporting within the communication area ensures that ESG communication is expertly managed and seamlessly integrated into the company’s broader messaging. It’s a step towards greater consistency and effectiveness in conveying the company’s ESG commitment to the world.